Following Are Some of the Recognized Risks Which Cannot Be

question 71

Multiple Choice

Following are some of the recognized risks which cannot be managed by inspection alone except one

• A) Equipment nearing retirement
• B) Failure mechanisms (such as brittle fracture, fatigue) where avoidance of failure primarily depends on operating within a defined pressure/temperature envelope
• C) Consequence-dominated risks
• D) The suitability and current condition of the equipment within the current operating envelope will determine the probability of failure (POF) of the equipment from one or more deterioration mechanisms

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Definitions:

Normal Balance

The side (debit or credit) of an account that increases its value, reflecting the conventional balance based on accounting rules.

Financial Statements

Documents that give an overview of a business's financial condition in both short and long term, including but not limited to, income statements, balance sheets, and statements of cash flows.

Worksheet

A worksheet is often a piece of paper or a digital document used by accountants to prepare adjustments and end-of-period financial statements.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, leading to its net income or loss.